Peak Equities Acquires API Headquarters for $27.5 Million

Melbourne fund manager Peak Equities has acquired an A-grade office building in Melbourne's Camberwell Junction for $27.5 million on a passing yield of 7.5 per cent.

The five-level commercial building at 250 Camberwell Road, which contains 5,420 square metres of lettable space, leased to the ASX-listed Australian Pharmaceutical Industries until March 2023.

The acquisition brought Peak Equities' property portfolio value to more than $177 million, on the back of its strongest 12 month period to date.

The building also features a 112 square metres boutique ground floor cafe, Pour & Sip, managed by Camberwell Food Group.

Peak Equities founder and managing director, Tom Borsky, said 250 Camberwell Road was a flagship asset for the company's portfolio.

"We are very selective in our acquisitions strategy. We generally seek to acquire two to three properties per year, although we have been particularly active over the past 12 months.

"Our focus is predominately on assets with a value of between $15 million and $25 million.

"We aim to secure blue chip assets backed by long term leases to high quality tenants, like API. This formula ensures stability and reduces reliance on market sentiment, to achieve consistent, above average returns for investors," Borksy said.

Of $74.5 million worth of assets acquired in the past 12 months Peak Equities have purchased a $17.55 million commercial complex at Noarlunga in South Australia; the $22 million The Precinct retail centre in Townsville; and the $7.65 million 69 Laver Drive office building in Robina on the Gold Coast.

The company also acquired a one-third stake in a residential development at 102 Balaclava Road in Caulfield, Melbourne.

Over the past year, Peak Equities sold a 30,000 square metre industrial asset at 57 Northgate Drive at Thomastown in Melbourne and an office building at 183 Varsity Parade in Varsity Lakes on the Gold Coast, and saw the completion of a residential apartment project, in which it owned a 20 per cent stake, in Heidelberg in Melbourne.